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CS Professional · Strategic Management and Corporate Finance · Analyzing the External and Internal Environment

Which of the following is a recognised limitation of SWOT analysis?

A recognised limitation is that SWOT lists factors without prioritising or weighting them, making it subjective. It does examine the external environment, suits any organisation, and does not need audited financial statements.

  1. AIt cannot be applied to the external environment
  2. BIt lists factors but does not by itself prioritise or weight themCorrect
  3. CIt can be used only by listed companies
  4. DIt requires audited financial statements to be prepared

Explanation

SWOT is a listing tool, so factors are often presented without weighting or ranking, and it can be subjective. It does cover the external environment, can be used by any organisation, and needs no audited accounts.

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